FFA response to Newcastle Jets statement

FFA today responded to a statement from the Hunter Sports Group regarding its acquisition of the Newcastle Jets. FFA rejected the inference that the group was somehow misled on licence fees at the time of its acquisition of the licence.

FFA today responded to a statement from the Hunter Sports Group regarding its acquisition of the Newcastle Jets. FFA rejected the inference that the group was somehow misled on licence fees at the time of its acquisition of the licence.

“There is a difference between a licence fee and an acquisition fee and the distinction is important,” said Head of A-League Lyall Gorman.

“The acquisition fee for a licence is unique to each club and reflects the particular circumstances of that club and its market - its history, its success, its support, prior investment including by FFA, the potential of the market and other factors that are relevant to an assessment of value.”

“In the case of the Jets, those market variables included the fact there was an established club with a successful history and strong supporter base in a traditional football area”.

“The agreement by Hunter Sports Group to the acquisition price reflected those market factors and followed an open and comprehensive commercial negotiation and due diligence process”.

“There are other transactions that support the fact that there is a substantial value in an A-League license.”

The Jets, former champions of the Hyundai A-League in the 2007/08 season, continue to enjoy on-field success in what is shaping up as the most competitive of finishes to a season in Hyundai A-League history.

With the Hunter Group-s commitment FFA remains confident this success, both on and off the field can only continue.

“We absolutely agree with the comments regarding the club-s great membership, supporter base and sponsors and commend the work that Nathan Tinkler and his group have done in building on what was already a great club with a rich history,” continued Gorman.

“The work the club is doing in the area of junior development working in cooperation with Football Northern NSW is also a great sign for the future of football in a region with a strong football culture and high participation levels at the grass roots.”